J.B. Hunt shares jump as cost cuts lift trucking firm's quarterly profit
16/10/2025 14:49
Oct 16 (Reuters) - Shares of U.S. trucking firm J.B. Hunt JBHT.O rose nearly 16% in early trading on Thursday after a $100 million cost-cutting program helped it defy a prolonged freight downturn and increase third-quarter profit. Since 2022, the trucking industry has struggled with excess capacity, declining freight rates, and only modest growth in shipment volumes. But J.B. Hunt managed to shield its third-quarter margins, owing to its cost saving program aimed at saving $100 million in a year, which included route optimization and lower overhead and administrative expenses. Analysts at Evercore ISI lauded the performance, calling it a J.B. Hunt-specific outcome that establishes a higher margin benchmark. The Arkansas-based company reported net earnings of $170.9 mln, or $1.76 per share, for the quarter ended September 30, up from $152.1 mln, or $1.49 per share, a year ago. Analysts on average had expected a profit of $1.46 per share, according to data compiled by LSEG. Despite soft demand, J.B. Hunt's strong execution and tangible progress towards cost savings drove stronger-than-anticipated results, analysts at BMO Capital Markets said. They said earnings trajectory can improve materially in 2026 if the cyclical backdrop does not worsen. Expectations for a U.S. trucking market turnaround in 2026 are gaining momentum, driven in part by federal regulations to drastically restrict commercial driver licenses to non-U.S. citizens, tightening truckload capacity. But experts warn that freight volumes must pick up for a meaningful recovery. J.B. Hunt shares trade at a 12-month forward price-to-earnings ratio of 21.71, compared with industry median of 16.15. (Reporting by Abhinav Parmar in Chandigarh; Editing by Sahal Muhammed) ((Abhinav.Parmar@thomsonreuters.com;))